Participates in pre budget meet with CM
Excelsior Correspondent
JAMMU, Jan 27: Warning that thousands of Micro, Small and Medium Enterprises (MSMEs) are on the brink of closure due to delayed incentives, rising costs, and withdrawal of critical fiscal support, the Federation of Industries, Jammu (FOIJ) has strongly urged the Government of Jammu & Kashmir to announce immediate and adequate budgetary support for existing industrial units,.
The demand was made by a delegation of Federation of Industries, Jammu which participated in the pre-budget meeting convened by the Chief Minister, Omar Abdulla here, today.
The delegation was led by FOIJ chairman, Virendra Jain and comprising of its co-chairmen Jitendra Aul, Lalit Mahajan, S.C. Dutta and Ajit Bawa.
In a detailed representation submitted ahead of the budget, FOIJ highlighted that prior to the implementation of GST, industries in J&K were supported through VAT remission, CST exemption, Toll Tax exemption, and Central Excise Refund, amounting to nearly Rs 2,000 crore annually. Post-GST, these incentives have either been withdrawn or sharply reduced, leaving industries with reimbursements of barely Rs 350-370 crore, creating a massive financial gap.
FOIJ demanded enhancement of budgetary allocation for reimbursement of turnover incentives on an actual turnover basis without any cap, and extension of the existing incentive beyond March 31 this year for another five years, to prevent large-scale industrial closures.
With the Central NCSS scheme ending in March 2026, FOIJ has requested the J&K Government to provide 5% interest subvention on working capital loans for five more years, without any ceiling, to existing industrial units.
The Federation has sought full reimbursement of net GST paid, including relief through one-time amnesty for delayed filings, stating that procedural delays should not deprive genuine units of their rightful incentives.
FOIJ expressed serious concern over the decline in procurement from local industries after the shift to the GeM portal, stating that local MSMEs are unable to compete with mainland suppliers due to high freight and production costs. The Federation demanded restoration of price and purchase preference for local units in Government procurement.
Highlighting repeated power amnesty schemes that excluded industrial units, FOIJ demanded a one-time power amnesty for local industries and freezing of power tariffs for at least five years, along with rollback of the recent hike for power-intensive units.
FOIJ reiterated its long-pending demand for conversion of leasehold industrial land into freehold, stating that freehold rights would improve access to bank finance and support second- and third-generation entrepreneurs.
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